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NYMEX-Crude falls towards $62 after product stocks rise

Published 07/07/2009, 08:56 PM
HMC
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TOKYO, July 8 (Reuters) - U.S. crude futures dropped towards $62 a barrel on Wednesday, extending losses from the previous day after industry data showed that distillate and gasoline stockpiles rose more than expected last week.

FUNDAMENTALS

* Oil prices fell 1.8 percent on Tuesday, settling down for the fifth straight day, on concerns about the pace of economic recovery and continued weak demand amid swollen inventories. [ID:nSP379393]

* The industry group American Petroleum Institute said after Tuesday's settlement that stocks of distillates, including diesel and heating oil, rose by 3.4 million barrels last week, exceeding analysts' projections for a 2-million-barrel build. [ID:nN07344831]

Gasoline inventories also rose, up 767,000 barrels compared with analysts' estimates for a 600,000-barrel build.

The API's report will be followed by an inventory report by the U.S. government's Energy Information Administration (EIA) later on Wednesday. [EIA/S]

* The top regulator of U.S. futures markets is considering a clampdown on excessive speculation in energy and commodity trading by restricting holdings of big players, part of a broader move by the Obama administration to stabilise the financial markets. [ID:nN07310607]

MARKETS NEWS

* Japan's Nikkei average fell 1 percent on Wednesday, as exporters such as Honda Motor fell on a stronger yen and after talk of a second U.S. government stimulus plan sent U.S. stocks to their lowest level in 10 weeks. [.T]

* The dollar hit a five-week low against the yen on Wednesday as investors continued to close positions betting against the yen amid caution over the outlook for the global economy. [FRX/]

* Talk of another U.S. stimulus plan and data showing American consumers falling behind on their bills underscored worries about the global economy on Tuesday, overshadowing an upturn in German manufacturing orders that provided a glimmer of hope. [ID:nN07522558]

DATA/EVENTS

* The following data is expected on Wednesday:

- G8 Summit

- Weekly U.S. Mortgage Market Index (1100 GMT)

- OPEC Secretary General News Conference (1300 GMT)

- EIA Weekly Petroleum Stocks and Output Data (1430 GMT)

- U.S. Consumer Credit for May (1900 GMT)

RELATED NEWS > Russia, China to push global currency at G8 summit[ID:nL741542] > EIA raises 2009 world oil demand forecast [ID:nN07325159] > G8 scrutinised for commitment to curb oil prices [ID:nL7155416]

PRICES Oil prices as of 0029 GMT Contract Mnth Price Change Day ago pct MA-20* NYMEX Contracts US Crude AUG9 $62.16 -0.77 -$1.12 -1.75% $69.39 Heat Oil AUG9 158.60 -1.47 -2.59 -1.59% 176.98 RBOB AUG9 171.10 -2.18 -0.76 -0.44% 192.62 Natgas AUG9 $3.371 -0.058 -$0.058 -1.66% $3.869 ICE Contracts Brent AUG9 $62.52 -0.71 -$0.82 -1.28% $68.79 Gasoil JUL9 NA -$12.50 -2.42% $558.81 Note: U.S. heating oil and RBOB gasoline contracts listed in cents per gallon. * = 20-day moving average for continuation month. (Reporting by James Topham; Editing by Chris Gallagher)

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